ARKO Corp.’s subsidiary GPM Investments, LLC Received a $1 Billion Real Property Commitment from Oak Street Real Estate Capital, LLC

Rhea-AI Summary

ARKO Corp. (Nasdaq: ARKO) announced a strategic agreement with Oak Street Real Estate Capital to enhance GPM Investments' acquisition strategy in the convenience store sector. Oak Street will commit up to $1 billion to purchase and lease real estate associated with GPM's acquisitions of convenience store brands and fueling stations. As the 7th largest convenience store chain in the U.S., GPM has executed 18 acquisitions since 2011, now operating nearly 3,000 sites.

This partnership aims to increase GPM's flexibility and acquisition capacity.

Positive

• Secures up to $1 billion from Oak Street for acquisitions.
• Enhances GPM's capacity for future acquisitions.
• Strengthens GPM's position as the 7th largest convenience store chain in the U.S.

Negative

• None.

Agreement provides significant additional flexibility to continue GPM’s acquisition growth strategy

RICHMOND, Va., May 04, 2021 (GLOBE NEWSWIRE) -- GPM Investments, LLC, a wholly owned subsidiary of ARKO Corp. (Nasdaq: ARKO), entered into an agreement with Chicago-based real estate investment firm Oak Street Real Estate Capital, LLC ("Oak Street"). Under and subject to the terms of the agreement, Oak Street has agreed to purchase and lease to GPM real estate associated with acquisitions of convenience store brands and fueling stations. GPM would own and operate the related acquired businesses, whereas Oak Street would own the real estate and lease it to GPM. Oak Street is committing up to $1 billion to the program for a one-year period.

As the seventh largest convenience store chain in the United States, GPM has executed 18 acquisitions since 2011, growing the company to almost 3,000 sites with more than 10,000 employees operating in 33 states and Washington D.C. This agreement further demonstrates the company’s continued commitment to aggressive growth.

“We believe that working with Oak Street will allow us to be a more attractive acquirer and add additional flexibility as we structure acquisitions,” said Arie Kotler, President and Chief Executive Officer of GPM. “We remain highly focused on our core acquisition model, and we expect that this partnership will enhance certainty of deal execution and as a result, strengthen our growth as a company.”

“ARKO is a phenomenal company that is making the right strategic decisions,” said Marc Zahr, Chief Executive Officer and Managing Partner of Oak Street. “Their ability to utilize our balance sheet to fund their real estate footprint allows them to focus on their accretive growth and core operations. We are excited about what our partnership can do for their business and to help fuel their continued success.”  

To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

About ARKO Corp. and GPM:
ARKO Corp. (Nasdaq: ARKO) owns 100% of GPM Investments, LLC (“GPM”). Based in Richmond, VA, GPM was founded in 2003 with 169 stores and has grown through acquisitions to become the 7th largest convenience store chain in the United States, with approximately 2,950 locations comprised of approximately 1,350 company-operated stores and approximately 1,600 dealer sites to which it supplies fuel in 33 states and Washington D.C. GPM operates in three segments: retail, which consists of fuel and merchandise sales to retail consumers; wholesale, which supplies fuel to third-party dealers and consignment agents; and GPM Petroleum, which supplies fuel to GPM and its subsidiaries selling fuel (both in the retail and wholesale segments) as well as sub-wholesalers and bulk purchasers. Its stores offer its fasREWARDS^® high value loyalty program, a large selection of beverages, coffee, fountain drinks, candy, salty snacks, and many other products to meet the needs of the everyday customer. One feature, setting many of its convenience stores apart is a wide array of proprietary food offerings ranging from fresh chicken, fresh-made salads, and sandwiches to healthy, grab-and-go meals.

About Oak Street Real Estate Capital:
Oak Street Real Estate Capital, LLC (“Oak Street”) is a real estate investment firm focused on acquiring properties net-leased to investment grade and creditworthy tenants. Oak Street’s investment funds currently have $15 billion of discretionary acquisition capacity and co-investment capacity to be deployed into sale-leasebacks and build-to suits. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities.

Forward-Looking Statements:
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; our ability to maintain the listing of our common stock and warrants on the Nasdaq Stock Market; changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which we compete; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond our control, including the potential adverse effects of the ongoing global coronavirus (COVID-19) pandemic on capital markets, general economic conditions, unemployment and our liquidity, operations and personnel; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that ARKO files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. ARKO assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.

Media Contact
Andrew Petro
Matter on behalf of ARKO
(978) 518-4531
apetro@matternow.com

Investor Contact
Chris Mandeville
(203) 682-8200
ARKO@icrinc.com

FAQ

What is the recent agreement between ARKO and Oak Street about?

ARKO Corp. entered into an agreement with Oak Street Real Estate Capital to secure up to $1 billion for GPM's acquisitions of convenience store brands and fueling stations.

How will the agreement impact ARKO's growth strategy?

The agreement provides GPM with additional flexibility and financial support to accelerate its acquisition growth strategy.

What is GPM Investments' position in the convenience store industry?

GPM is the 7th largest convenience store chain in the United States, with nearly 3,000 locations.

How many acquisitions has GPM executed since 2011?

GPM has completed 18 acquisitions since 2011.

What is the significance of the $1 billion commitment from Oak Street?

The $1 billion commitment from Oak Street will facilitate GPM's acquisition of real estate for convenience store brands, enhancing its growth potential.